County board approves intent to bond for projects

Published 9:50 pm Friday, May 6, 2022

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The Freeborn County Board of Commissioners voted 4-1 Tuesday on their intent to bond for a series of deferred maintenance and energy efficiency projects at various county-owned buildings. 

The amount to be bonded has not yet been determined, but the projects being considered total about $13.6 million, according to Apex Facility Solutions LLC, an Anoka-based company the county contracted with last month to oversee gathering bids and in essence act as the general contractor. 

The exact amount to be bonded will come before the board at a later date. The board could opt to pay for a portion of the cost with reserves. 

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The county has worked with Apex for at least five months to assess the needs at the county’s buildings, starting with $20 million in projects and bringing that down to less than $14 million.

Projects include roofs on the Government Center, the Human Services building, the Environmental Services building and the county highway shop. Other things such as roof and window replacements, upgrading lighting to LED technology and other heating and cooling replacements are also included. 

Some of the upgrades are expected to bring utility savings — references to between $2 million and $4 million were stated in the meeting — and if the county doesn’t see the savings, the company pays the county back itself. 

Second District Commissioner Dan Belshan, who voted against the action, brought up the state statute that requires county governments to take sealed bids for contracts over a certain amount. 

He also said he thought the prices the company estimated for LED lighting were high and questioned the estimated cost to build a new county shop building in Oakland. 

“I think we should slow the train down,” Belshan said, noting he thought all of the projects should be re-bid. 

First District Commissioner Brad Edwin said he had a local roofer approach him because he was unaware the project was happening. The roofer told him he could provide as good of a roof or better and save the county half a million to a million dollars.

“If we can lessen the bond for the taxpayers of this county, I think we need to be very vigilant about that,” Edwin said. 

He said the roofer also spoke with the county administrator and has a meeting with Apex for further discussion. 

“I know these repairs are in dire need, but I think we need to slow this down just a little bit,” Edwin said. “(If) we can save the taxpayers one or two million dollars, we really need to know that.” 

Greg Ackerson with Apex said according to state statute, if a company can guarantee the price (meaning no change orders to the county) and guarantee the performance of the project (meaning the savings it can bring the county in utility savings), then the company is not subject to the typical bid requirements. The company, however, still gets competitive pricing, he said, and has been working for several months investigating roofing methodology and identifying scopes of roof design for the project. 

“What we’re really really concerned about is being pennywise and pound foolish,” Ackerson said. “So we’re very very cognizant of the fact we want to make sure we have the lowest lifecycle cost for everything we’re doing for the county.

“Is there a possibility to save a couple nickels on roofing by reducing the scope? You betcha. But if we reduce the scope, you’re going to end up spending more in the long run.” 

He said everything is looked at while keeping in mind what is best for the taxpayers.

Ackerson also noted that the pricing has not been finalized for the Oakland building. Right now there is an allowance until it is actually bid out. If numbers come in lower, which he anticipates they will, those savings would come back to the county. 

Belshan said he did not have confidence in the company and compared it to when the courthouse was first built 16 years ago. He said he did not want the company to bid all of the projects. 

Brad Herfindahl, buildings and grounds superintendent, said he has made phone calls to other facility managers in the state, and Apex is highly recommended. Administrator Tom Jensen also said Apex has an outstanding reputation in the state and said the vendors it works with are top-notch. 

Herfindahl said the light bulbs that would be installed would be good for 18 years, compared to the bulbs that can be purchased at places like Home Depot, which are good for four years. 

Herfindahl noted that as the meeting was taking place, he received an email about another leak in the building. Leaks have been reported throughout the building, and photos were shown during the meeting of leaks in the jail stemming from heavy rains a few days prior. 

Edwin said he was comfortable after hearing that Apex agreed to talk to the local roofer to see if there could be savings. At this point, it is unknown if what the local roofer is proposing is the same or worse than what was included in the scope. 

Belshan was ultimately the only commissioner to vote against the resolution. 

The resolution that passed stated the issuance of the bonds is subject to a referendum if a petition meeting the requirements in state statute is filed with the county auditor in 30 days.